P/B-tang = Price/Tangible Book Value
Price = Share Price.
Tangible Book Value = Equity - Intangible Assets.
Unlike P/B ratios, this excludes intangible assets such as e.g. brand and goodwill from equity.
This key figure is used to show how the company's equity, after the deduction of intangible assets, is valued in relation to the share price.
Things to keep in mind
- Assets can be difficult for some companies to value, thus resulting in a misleading P/B figure.